Google Shopping Trends Q3/2016
Research Report Of The Retailer's Most Indispensable Channel!

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Google Shopping Trends Q3/2016
Research Report Of The Retailer's Most Indispensable Channel!
Insights for Marketers, by Marketers

Google Shopping Campaigns, previously known as Product Listing Ads (PLA), have come far since its launch 3 years ago. It has gone from being an experimental channel to now being revered as the most essential, indispensable, high-converting channel for every E-Commerce player who has a catalog to showcase online. It’s come to be the preferred campaign-driver, gaining a hand over vanilla paid search campaigns.

As you know, Google Shopping lets retailers bring their entire product inventory online. A diligent ad format, Shopping allows retailers to closely organise and monitor paid campaigns, replete with optimisations focussed on the bottom line - the all-crucial and ever-evasive cart conversions.

At Sokrati, we work with over 200 digital retailers and marketplaces across 7 countries. This report is an organisational attempt at digging deep into how and what is converting most using Google Shopping, revealing validations and best practice opportunities for digital retailers of all sizes.

The insights were drawn from the following data sources:

100+
Indian Retailers
450+ Million
Ad Clicks
25+ Billion
Impressions
8+ Million
Transactions

Reminders

  • This Report is an intellectual property of Sokrati Technologies PLC, and any reference or republishing of this data must be formally informed to conversations@sokrati.com, and alluded to with clear credits and backlinks.
  • This Report has not been influenced by any retailer in particular. Sokrati has a non-preferential team drawing the following statistics based purely on factual research and study of the E-Commerce industry.
  • This Report concentrates purely on online retail, and does not including other verticals.
  • The statistics on this report is a collection and study of data gathered from the E-Commerce industry across India’s July-August-September 2016 quarter only.

50% of Paid Marketing Orders Convert from Shopping Campaigns Alone!

Google Shopping Campaigns drive a staggering 25% of the web’s Ad Impressions today, with 50% Ad Clicks resulting in an unparalleled 50% converting into paid Transactions. Hence, we note that over 25% of every successful online retailer’s marketing wallet is allocated to Google Shopping.

Other channels include: Google Search, Google Display, Google Remarketing, Facebook, Facebook DPA and Instagram

Sokrati Reckons: Shopping Ads are Google’s instruments to bring more visual influence on to Search pages. We find Google innovating on this format constantly and rapidly. 10 Product Carousel Ads on Mobile, 15 Carousels on Desktops, Shop the Look, Product Ratings, et al are all the latest features marking massive conversions.
Advertisers’ wallet share towards Google Shopping will grow to over 30% in the next 6 months.
Sokrati Suggests: Structure your Shopping Campaigns to mimic your digital or physical stores; make the most of the flexibility and customization advantages this powerful ad format provides.
Did you know? You can mark up to 30% improvement on your Click-Through Rates simply by optimizing your product titles and descriptions.
Sokrati’s own Merchandise Management System ensures that each product title and description in your catalog contains relevant metadata, and are optimized to fit into the available space provided by the channel.

60% of Google Shopping Transactions Convert on Large-Screened Devices

Even though desktops and laptops continue to rule the roost as the preferred devices for online shopping, smartphones are steadily catching up with a consistent growth in the share of ad impressions, clicks and spends.

Sokrati Reckons: Smartphones are clearly proving to be the preferred device to search for things on the go. Products with a low-medium price point convert easily from these quick searches, and Google Shopping Ads are bound to be the key facilitators, with their large ad real estate.
We note that desktop Shopping Ads convert at 25-30% higher AOV (Average Order Values) than smartphone Shopping Ads.
Sokrati Suggests: Retailers must optimize their entire website and purchase experience for various device types, catering to specific limitations and leveraging respective capabilities.
Website accessibility and page loads in weak signal areas, faster updates on mobiles, great quality product images, on both search and product pages to drive comparative searches on larger screens - all of these best practices are recommended for retailers of all sizes.
Did you know? Your conversion rate improves by over 20% on an average for every 1 second your Site Load Time reduces!

Click-Through Rates of Google Shopping Ads are 2X Higher Than Ads on Other Channels

Google Shopping Campaigns have come to be the most powerful, efficient, and cost-effective of paid marketing channels, influencing conversions from strongly relevant audiences. It gains 2X or even higher CTRs at 50% lower CPCs, and 20% better CVR (Conversion Rates) compared to other ad formats. This is also the fastest converting channel with 17% faster time to-purchase, and 45% shorter on-site sessions.

Other ad formats include: Google Search, Google Display, Google Remarketing, Facebook, Facebook DPA and Instagram

Sokrati Reckons: Google Shopping’s rich yet compact Ad format, with its inherent comparative shopping features ensure the product evaluation and consideration stages are complete on the SERP itself.
Ad clicks, therefore, result in a higher probability of the advertised product being purchased.
Sokrati Suggests: Retailers should consider Google Shopping to be an extension of their website, while ensuring the shopping experience, including product attribute visibility is consistent with that on the website.
Did you know? Product images where the actual product is in clear focus can have 30-60% higher CTRs than those where it isn’t.
Sokrati’s own AdCreative Technology automatically highlights your products within images, before using them within Ad creatives on any channel!

Products Costing Under 5000 INR Convert 5X Better on Google Shopping

Our study on Google Shopping shows that products priced above 5000 INR have 80% lower conversion rates than those priced under it. However, understandably, in terms of discounted products, it’s the higher discount buckets (over 20% discount) that have a 30% higher conversion rate on average, than the lower discount buckets (up to 20% discount).

Sokrati Reckons: Whether buying digitally or in malls, shoppers take two major factors into account - product prices and discounts. Since Google Shopping clearly displays product prices, it’s an obvious choice for shoppers to purchase the lower priced items, converting much better than the higher-priced ones.
Comparatively, these products tend to offer higher discount rates, resulting in 23-38% better conversions than lower discount buckets.
Sokrati Suggests: Retailers should ensure that all product details mentioned within their Google Shopping Campaigns are synchronized with the products available on the website, to avoid any confusion for online shoppers.
Did you know? One of the strongest reasons for purchase abandonment is when a shopper finds a difference between the campaign details that influenced him to click on the ad, compared to the details (higher price, irrelevant description, lack of availability) he finds on the corresponding landing page.
Sokrati’s tighter integration with your store’s apis and Google Merchant Center (GMC) means all the product changes happening on your website are kept up-to-date on GMC as soon as they go live.

Electronics, Furniture and other Hard Goods Categories Drive up to 49% Higher Click-Throughs on Google Shopping

Hard goods drive efficient, cost-effective conversions, compared to soft goods (Apparel, Accessories, Beauty Products), gaining 49% higher CTRs at 40% lower CPCs.

Sokrati Reckons: Google Shopping Ad Campaigns are well-suited for product categories that require a short time to evaluate before purchase, and ideally for an audience who’s already 1-2 steps down the purchase funnel.
For categories when the audience needs more time to consider and research about the product, Google Shopping’s product-level landing feature could prove counter-productive.
Sokrati Suggests: Retailers should ensure their Shopping Campaigns are structured to leverage peculiarities of each category for budget allocation, bidding and optimizations.
Be sure to include a category’s shelf life, purchase cycle and profit margins.
Did you know? One of the most common Spray & Pray methods in digital shopping is to create a single shopping campaign, and stuffing it with all the possible products, without including any differential bidding techniques. An estimated 70% of Retailers using Google Shopping use this unrecommended method. Although this makes manual campaign management highly convenient, the method penalizes your star products and wastes enormous amounts of Ad spends on poorly-converting products.
Sokrati’s Predictive Analytics ensure bids are automatically allocated for each individual product SKU within the Retailer’s catalog, in order to maximize ROI from every single one of them.

Sokrati for E-Commerce

Founded by ex-Amazonians, Sokrati offers the most powerful multi-channel performance marketing platform for Online Retail. Sokrati builds predictive intelligence around product merchandise and relevant audience personas - to automate marketing across digital channels like Google Search, Google Shopping, Google Display, Facebook Display, Instagram, Facebook Product Ads, Bing Shopping, Bing Search, Twitter, and Remarketing.

Leveraging its proprietary technology platform, Sokrati works with 200+ E-Commerce startups and conglomerates including eBay, Marks & Spencer and Snapdeal delivering 30%+ upside on digital marketing ROI. Sokrati manages an estimated 25% of India’s E-Commerce Ad Spends and is rapidly expanding globally, currently partnering with household names in 7 countries.

Looking for a strong Google Shopping Partner? Give us a shot!